MINICASE: MKTG - 10 BUSINESS ETHICS PROGRAM

1992 Arthur Andersen & Co, SC. All rights reserved. Page 1 of 1

Falsification of Data

Topic: Marketing Research (via research supplier company)

Characters:Greg, Marketing research analystElizabeth, Project/Work coordinatorMs. Jordon and Mr. Collins, Co-owners and active managers

Greg is in his second month of employment with XYZ Marketing Research. The firm is alarge, well-known, highly respected, very successful supplier of marketing research. Itsclients include major companies in many different industries throughout the world.

Routine procedure is for Ms. Jordon and Mr. Collins to secure business in the form ofresearch projects. Each project ends with an analyst preparing a written report withmarketing strategy recommendations based on his/her interpretation of the data. This reportis given to Elizabeth who gives it to Ms. Jordon and Mr. Collins who then deliver the writtenreport, complete with a verbal presentation, to the client.

Projects are assigned to one of the 16 research analysts by Elizabeth, depending on the workloads of the different analysts. Given the volume of projects and the similarity of mostprojects, different analysts usually work on different parts of a project. For example,different analysts are used to plan the sample, construct the questionnaire, and interpret thedata. Data collection and computer processing of data are conducted by separate companiescontracted with the XYZ Marketing Research company.

Greg’s responsibilities are to interpret the data and write a report with marketing strategyrecommendations. He has completed about 20 such projects, for which the co-owners havepraised his work. On Wednesday afternoon he completed this project. Following regularprocedures, he gave the completed report to Elizabeth to give to Ms. Jordon and Mr. Collins.Thursday morning when Greg arrived at work, he found the original computer data printoutsby his door with numerous numbers in the tables changed with red ink There was also a noteto see Elizabeth.

Elizabeth explained that Mr. Collins thought the findings would have been different and thatthe client would probably not agree with the actual findings and related recommendations.He has therefore taken “research license” and changed a few numbers in the computer dataprintouts. Now he wants you (Greg) to rewrite your report accordingly. Elizabeth explainedthat since clients are provided with a copy of these summary printout sheets, she has calledthe outside computer firm to send new printouts with the revised numbers.

Author: Gordon L. Patzer, Professor of Marketing, University of Northern Iowa.